All Forum Posts by: Phil Mcnally

I don't see 50% equity being a buffer for anything. Having 25% down and 25% cash reserve would be a better buffer for unforeseen events. Also it is cash so you don't need the extra cash flow :-)

So what is it that combines property investing and currency mining? I am not against either but also do not see how one makes the other better in combination. What are you imagining?

phil

How are things going now. Anyone want to follow up?

This just makes me want to diversify more. Some cash flow areas, some appreciation areas. Why not do both.

Thanks for the link

I was going to say the same thing. If you feel strongly about a direction you can speculate on that direction and win big or lose big.

Or you can invest for the long duration and somewhat avoid the speculation part and just be patient to get a few ups and downs out of the way.

This would be an argument where 30y fixed rate loans are good if you don't know what the near future holds but you are confident about 20 years from now. I see myself in that camp. I know I am going to be wrong in the short term so make a long term plan where I know I am going to be right.

What did Benjamin Graham

Being on the sidelines may be the wrong way to state the fact that deals ar not fitting a reasonable investment criteria.

If investing is like a big fishing net being trawled around the property ocean, your criterial, 1% rule etc would be the size of the holes in your net. Small or zero profit deals just pass through the net. Nothing is caught. Nothing spent. Nothing to worry about.

As deals improve and 'grow' in profits the net will start catching again. You are only on the sidelines if you are in the harbor sleeping...like me in 2011 :-)

The point of this thread is a good reminder not to change your 'net' criteria for something finer just because you want to catch something. You might get a baby sea monster :-)

phil

http://www.nreionline.com/multifamily/15-top-marke...

"Developers will bring 371,000 units to the multifamily market in 2017, according to data from commercial real estate services firm Marcus & Millichap’s 2017 National Multifamily Investment Outlook. If that figure hits, it means apartment construction this year will reach a record high – its highest level in 30 years. The firm predicts that national apartment vacancy will reach 4.0 percent at the end of 2017, based on the expectation that unemployment should hold at 5.0 percent and hiring will remain “sound,” prompting the millennial generation to bolster new household formation."

It is a new permanent high :-)

Hi Katherine

I am nearby and doing the same thing with out of state investing. Happy to chat here or real life.

phil

Such hard work. Well done. Sounds like you have been investing in good times (last five years) make sure you are well set for some down years as well. Don't want to lose all that hard work being over leveraged etc. Sounds like you are on top of things. Impressed.